Government increases revenue projections by 220 per cent

Government increases revenue projections by 220 per cent

Government says it’s projecting a complete revenue and grants of GHS144 billion, 18.0 per cent of Gross Domestic Product (GDP). 

The projection represented a 220 per cent improve in contrast to a goal of GHS65.4 billion set in 2022. 

Mr Ken Ofori-Atta, Minister of Finance, made this recognized on the ground of Parliament on Thursday when he introduced the 2023 Budget Statement and Economic Policy.  

Government has inadvertently elevated its expenditure projections by GHS205,431 million (25.6% of GDP) in contrast to a goal of GHS104 billion, equal to 17.6 per cent of GDP, representing a 197.5 per cent. 

The total Budget steadiness to be financed is a fiscal deficit of GHS61.5 billion, equal to 7.7 percent of GDP whereas the corresponding Primary steadiness was a deficit of GHS8.9 billion, equal to 1.1 per cent of GDP. 

Projected Expenditure, he said entailed compensation of staff projected at GH¢45 billion; Goods and Services at GH¢8.05 billion; Interest Payment at GH¢52.6 billion; Grants to other Government Units estimated at GH¢30.08 billion whereas Capital Expenditure (CAPEX) was projected at GH¢27.7 billion. 

“Mr. Speaker, Other Expenditure, mainly comprising Energy Sector Levies (ESL) transfers and Energy Sector Payment Shortfalls is estimated at GHS26.7 billion. 

“This estimate shows a contraction of 0.3 percentage points of GDP in primary expenditures (commitment basis) compared to the projected outturn in 2022 and a demonstration of Government’s resolve to consolidate its public finances,” the minister said. 

Mr Ofori-Atta explained that the 2023 revenue projections was underpinned by everlasting revenue measures – largely tax revenue measures that might amount to 1.35 percent of GDP. 

These measures he said included overview on digital levy, reforms to revenue tax regime, a overview of the higher limits for car advantages and the introduction of an extra revenue tax bracket of 35 per cent. 

To obtain fiscal consolidation, he said government has proposed the discount of threshold on earmarked funds from the present 25 per cent of tax revenue to 17.5 per cent of Tax Revenues and migrated all earmarked funds onto the GIFMIS platforms. 

He said government intends to proceed with 30 per cent reduce within the salaries of the President, Vice President, Ministers, Deputy Ministers, MMDCEs, and political office holders together with these in State-Owned Enterprises. 

“We will place a cap on salary adjustment of SOEs to be lower than negotiated base pay increase on Single Spine Salary Structure for each year” he added. 

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially symbolize the views or policy of Multimedia Group Limited.

Credit: myjoyonline

Related Posts

Mary Afia Kesewaa (Awo Yaa)

Mary Afia Kesewaa (Awo Yaa)

FAMILY: Daasebre Ofosu Kwabi Ayebiahwe (Chief Of Etwereso, Omnhene Of Odau And Acting Benkumhene of Akyem Abuakwa), Osabarima Adigya Gyamfi (Akyem Akrofufuhene), Nana Boatemaa Korama (Bomaahemaa and Senior Lecturer, University…

Read more
Nigeria to abolish English in junior school

Nigeria to abolish English in junior school

All schools currently use English because the frequent language of instructing and studying The Nigerian government has introduced a policy aimed at selling the instructing of major school pupils in…

Read more
One killed in robbery attack on Bimbilla-Accra road

One killed in robbery attack on Bimbilla-Accra road

One individual is reported dead following an armed robbery attack on a bunch of traders on a bus en route to Bimbilla in the Northern Region. The robbers on Wednesday…

Read more